SUMMARY OF ACTION ITEMS
CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
OCTOBER 11 - 12, 2002

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its October 2002 meeting.  A complete set of minutes is available for review upon request.  For more information please contact Pauline Avila at paulinea@car.org

SPECIAL REPORTS

Lockbox Task Force
1. It was reported for information only that the Lockbox Task Force has adopted the following mission statement.

"To make sure the REALTOR® members have access to meaningful choices in Lockbox systems that are:
--secure for the homeowners
--functional and reliable to Agents
--cost effective for the REALTORS®
--access controlled by REALTOR® organizations; and
--systems that have sufficiently advanced technology to accomplish the objectives"

The Task Force also adopted the following motions, which have been approved by the C.A.R. Leadership Team.

That C.A.R. in conjunction with N.A.R. take appropriate actions to ensure that Supra honors the intent of all existing contracts with Associations and MLS's.

That C.A.R. request N.A.R. to explore through its Technology Center the adaptation of existing and emerging technologies to develop Lockbox systems such as through design competitions, etc.

Property Information/MLS Task Force
1. It was reported for information only that the Property Information/MLS Task Force has completed the first phase in the development of the "Intelligent Agent" tool as authorized by the Board of Directors at the June 2002 meetings, and will be developing a high level implementation strategy and product development plan.  It is anticipated that the Task Force will develop this into a formal motion for approval by the Board of Directors during the January 2003 meetings.

Real Estate Business Services
1. That the following slate of nominees for a two-year term on the REBS Board of Directors be approved, and that the C.A.R. President be instructed to elect these individuals on behalf of C.A.R.
Mike Silvas, Sonoma, Broker/Owner, Morgan Lane
David Parry, San Francisco, Agent, McGuire Real Estate
Willard Elliott, Upland, Broker/Manager, C21 Prestige Properties
Zena Drewisch, Santa Barbara, Association Executive, Santa Barbara AOR

PUBLIC POLICY

Common Interest Development
1. That C.A.R. sponsor legislation to preclude "any form" of homeowner association transfer fees, excluding reasonable administrative costs incurred by a homeowner association in connection with a transfer.

Federal Issues
1. That C.A.R., in conjunction with NAR, work with the Department of Housing and Urban Development to pursue improvements in the REO sales process.  These improvements should include, though not be limited to, the development of minimum standards for:
--Condition of property at close
--Maintenance of property during marketing
--Delivery of existing reports to buyer and their agent
--Access to property by prospectivebuyers and their agents
--Performance and responsibilities of listing agent/M & M contractor

Housing Affordability
1. That C.A.R. co-sponsor legislation to:
--Statutorily memorialize that housing shall be a high priority under the California Coastal Act
--Preclude local governments from reducing the density of a housing development if the local government does not have an approved element
--Allow an interested party to bring a writ of mandate compelling issuance of a local governments annual housing production report.
--Add clearer statutory language under the fair housing act about discriminatory land use practices if the development is for low and moderate income households.
--Preclude a local government from havinga second unit ordinance that would have the effect of making it difficult or impractical to build a second unit.

Land Use and Environmental
1. It was reported for information only that C.A.R. will postpone sponsorship of legislation on lot line adjustments until adequate examples are collected to support future sponsorship.

Legal Action Fund
1. That the proposed amendments to the Legal Action Fund Bylaws be approved as noticed.
2. It was reported for information only that leadership is urged to consider looking into the issue of finding solutions to the workers' compensation issue by virtue of a task force, referral to the Legislative Committee or other appropriate action in light of the rising cost of worker's compensation insurance, which in some cases is higher than E&O insurance.  The issue should include possibly giving options to brokers to make carrying worker's compensation insurance optional.

It was further reported for information only that in the case of Travis v. County of Santa Cruz, the Trustees authorized a letter urging the California Supreme Court to accept hearing in this case on the issue of whether a property owner can sue on a regulation impacting their property within 90 days of rejection of the permit instead of within 90 days the law was actually enacted.

In 1981, the County of Santa Cruz enacted a local ordinance allowing construction of a second unit but putting conditions on it such as the amount of rent and a restricted occupancy of 2 low-income adults or two average-income seniors.  Over the years the County amended the ordinance.  In 1999, Travis applied for a permit, which was granted subject to the conditions.  He filed an administrative appeal but did not receive any relief.  He then filed suit challenging the ordinance as being in conflict with the State rent control laws which preempted City's ability to set initial rent on the newly constructed units.  The trial court rejected the petition as time barred saying the owner needed to challenge the ordinance within 90 days of the last amendment to the city ordinance, not in relation to his own permit.  The Court of Appeal affirmed.  The property owner is seeking relief from the California Supreme Court.

Legislative
1. That the Leadership Team appoint a task force to make recommendations regarding insurance availability issues affecting real estate transactions.  The task force should include, but not be limited to, members with expertise inproperty management, finance, liability, and transaction documentation, and report in January 2003.
2. That C.A.R. sponsor legislation in 2003 to authorize county recorders to begin the use of electronic recording of real estate documents.
3. That C.A.R. sponsor an omnibus bill to make technical clean-up of selected real estate disclosure statutes.  The changes will include formatting of the Natural Hazards Disclosure form, uniformity of airport noise disclosures, definition of military ordnance locations, and parcel specific information showing special district (Mello-Roos and 1915 Act) bond assessments.
4. That C.A.R. sponsor legislation to exempt local board arbitrations between REALTORS® from the new arbitration disclosure rules promulgated bythe Judicial Council and new changes in the Code of Civil Procedure.
5. That C.A.R. adopt the following positions on November 2002 ballot propositions:
Proposition 46: Housing and Emergency Shelter Trust Fund Act of 2002:  "FOR" (previously adopted position)
Proposition 47: Kindergarten-University Public Education Facilities Bond Act of 2002:  "FOR" (change of previously adopted "Neutral" position)
Proposition 48: Court Consolidation: "NOT REAL ESTATE RELATED"
Proposition 49: Before and After School Programs; State Grants:  "NOT REAL ESTATE RELATED"
Proposition 50: Water Quality, Supply, and Safe Drinking Water Projects; Water Projects; Coastal Wetlands Purchase and Protection:  "AGAINST"
Proposition 51: Transportation: Distribution of Existing Motor Vehicle Sales and Use Tax:  "AGAINST"
Proposition 52: Election Day Voter Registration: Voter Fraud Penalties:  "NOT REAL ESTATE RELATED"

Manufactured Housing
1. It was reported for information only that the Manufactured Housing Committee has directed staff to explore with N.A.R. staff the possibility of the secondary-market (Fannie/Freddie) developing loan programs for mobilehomes and/or manufactured housing; staff will report back to the committee in January.

Property Management
1. It was reported for information only that the Property Management Committee recommends that the Standard Forms Advisory Committee as soon as reasonably practicable, create the appropriate forms as a result of the recent successful passage of AB2330 (Migden) and SB1403 (Kuehl).

Real Estate Finance
1. That C.A.R. follow N.A.R.'s policy direction and submit a comment letter in support of improved disclosure and in opposition to the Guaranteed Mortgage Package.

Taxation
1. That C.A.R. work with the Franchise Tax Board to postpone the adoption of regulations for the new real estate withholding provision contained in AB 2065 (Oropeza), until corrective legislation has passed and that C.A.R. develop a coalition of interested participants to jointly sponsor corrective legislation.

BUSINESS

Professional Standards
1. That C.A.R. adopt the Draft Procuring Cause Guidelines, for implementation upon final approval by NAR, with authorization for staff to make non-substantive changes suggested by NAR.
2. It was reported for information only that, because the NAR Professional Standards Committee isdiscussing Standard of Practice 3-4 at their November 2002 meeting, the C.A.R. Professional Standards Committee will postpone, until January 2003, a motion that C.A.R. work to have NAR rescind Standard of Practice 3-4 relating to disclosure of dual and variable rate commissions.
3. It was reported for information only that the C.A.R. Professional Standards Committee recommends that the C.A.R. Legislative Committee move for C.A.R. to sponsor legislation to carve out the REALTOR® Associations and their volunteer arbitrators from the California laws requiring arbitrators to disclose information that is confidential under the rules of NAR, C.A.R. and the local association.

Standard Forms Advisory
1. That C.A.R. sunset the existing RPA-11 as of December 31, 2002. (motion from Executive Committee)
2. It was reported for information only that the Standard Forms Advisory Committee has unanimously approved the release of the California Residential Purchase Agreement (RPA-CA).  The study groupreceived and carefully considered over 350 written member comments.  Many of the comments received were adopted.The Committee further reports that to date over 15,000 members have received training on the RPA-CA and several dozen additional trainingsessions and legal outreaches have been scheduled through the end of this year.  Over 1,500 members attended seven training sessions at the 2002 EXPO.  Response to the training was very positive.

The Committee received verbal reports from 14 regions on the RPA-CA revision, each indicating a preference that C.A.R. produce one statewide form and that the RPA-11 be discontinued at a near term future date.  Strong support was given for the process used in creating the RPA-CA.The Committee believes that the revision process utilized in creating the RPA-CA allowed for significant member and director input and broad representation of our diverse membership body.  Historically, prior form versions have been immediately discontinued with the release of a new form.  For these reasons, the Committee strongly supports and highly recommends that the current form revision process remain unchanged. The Committee recommends that the RPA-CA be adopted as the one statewide form produced by C.A.R. and that the RPA-11 be discontinued as soon as possible.  However, the Committee would support a brief delay in the discontinuance of the RPA-11.

The Committee further recommends that in light of the strong support for the RPA-CA and the significant number of members trained to date, that the RPA-CA remain substantively unchanged in the near future, absent legislative or legal requirement.

The Committee also reports that the following categories of forms will be looked at for revision next year:
--Property Management (including landlord/tenant)
--Office Management and Operation

POLITICAL

CREPAC Trustees
1. That C.A.R. approve the following slate of nominees for CREPAC Trustee and CREPAC Alternate:Nominees for CREPAC Trustee (in Region Order):

(November 2002 - November 2005)
Paula Colombo, Region 3
Diane Hardie, Region 13
Terry Fenske, Region 15
Sharon Bowler, Region 16
Melanie Hildebrand, Region 25

Nominees For CREPAC Alternate (In Region Order)
(November 2002 - November 2003)
Dawn O'Rourke, Region 1
Susanna Schlendorf, Region 5
Judy Jarvis Ellis, Region 9
Suzanne Yost, Region 10
Wendy Furth, Region 18
Stephen Goddard, Region 21
LeFrancis Arnold, Region 22
Nancy Hunt, Region 32

IMPAC Trustees
1. That C.A.R. approve the following slate of nominees for IMPAC Trustee and IMPAC Alternate:Nominees for IMPAC Trustee (in Region Order):

(November 2002-November 2005)
Vicky Lynn Campbell, Region 5
Richard Otterstrom, Region17
Dennis Pantano, Region 25
Shirley Long, Region 32

Nominees for IMPAC Alternate
(November 2002- November 2003)
Aida Dimejian, Region 13
Karen O'Brien, Region 15
Patricia O'Neill, Region17
SteveWhite, Region 18
Greg Haas, Region 19
Jeanne St. Clair, Region 23
Mark Marchand, A.E., Region 30

2. It was reported for information only that the IMPAC Trustees have approved the following contributions:
--Yes on Proposition 46: Housing and Emergency Shelter Trust Fund Act...$50,000
--San Francisco HOPE Homeownership Initiative: Campaign support pursuant to the request of the San Francisco Association of REALTORS®...$25,000 (In addition, the San Francisco Association of REALTORS® is authorized to conduct an Interboard Solicitation)
--Rent Control Education Effort: Proactive program pursuant to the request of the Pasadena-Foothills Association of REALTORS®...$15,000
--No on SOAR in Simi Valley: Campaign support pursuant to the request of the Simi Valley-Moorpark Association of REALTORS®...$10,000
--Madera Unified School District Bond Act: Campaign support pursuant to the request of the Madera Association of REALTORS®...$5,000
--N.A.R. HOPE Awards -- Joint sponsorship with C.A.R. of May 2003 event pursuant to the request of the C.A.R. Leadership Team...$5,000
--Lead consultant fee for technical expertise on lead-based paint legislation pursuant to the requestof C.A.R...$1,250

Political Affairs
1. That the 2003 voluntary political contribution allocation formula remain unchanged, and that the amount of the suggested Political Survival contribution remain $49 for 2003.
2003 Distribution Formula          Current 2002 Distribution Formula
(Personal Contributions)             (Personal Contributions)
15% to CREPAC/Federal            15% to CREPAC/Federal
15% to CREIEC                          15% to CREIEC
70% to CREPAC/BORPAC          70% to CREPAC/BORPAC
(Split: 60% to CREPAC State/40% to Local BORPAC)

(Corporate Contributions)           (Corporate Contributions)
15% to CREIEC                          15% to CREIEC
85% to CREPAC/BORPAC         85% to CREPAC/BORPAC
(Split:  60% to CREPAC State/40% to Local BORPAC)

2. It was reported for information only that the Political Affairs Committee recommends to the Political Activities Fund Committee that the Member Education campaign be continued in 2003.

OPERATIONS

Award Selection
1. To approve the selection of Carolyn D'Agosta, North San Diego County as the recipient of the 2002 California Distinguished REALTOR® Award, the highest recognition that C.A.R. can bestow on a member.

C.A.R. Scholarship Foundation
1. It was reported for information only that various scholarships were awarded by the Trustees, and that funds were being raised for scholarships in memory of C.A.R. Past President Mack Powell.

California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR® EXPO 2002 experienced record breaking attendance figures.  The 2003 event will be in San Diego from September 30 to October 2.

Executive
1. That C.A.R. sunset theexisting RPA-11 as of December 31, 2002.
2. That a Resolution of Appreciation for Marleen Schuster be approved.

Membership
1. That the following applicants be granted C.A.R. Honorary-Member-For-Life status:

Alameda AOR
Dorothy Eaton

Arcadia AOR
Arthur W. Del Rey
Margaret F. Henkey
Joseph Benjamin Ragsdale

Atascadero AOR
Donna T. Bergquist
Lawrence Lewis Cone
Patricia Nimmo
Martha Mary Verheyen

Bay East AOR
Millie Falasca

Citrus Valley AOR
James A. Watts

Contra Costa AOR
Barbara Boyle
Ron Gross
Lloyd King
Barbara Mayhew
Paulina McGill
John G. Miller

East San Diego County AOR
Connie Butt

Marin AOR
Jay Haggard
Ray Rickey
Marie Whitermore
Bruce Wrisley

Monterey County AOR
Lee Breshears

North Bay AOR
Dorothea Goehring
Lorraine Mathews
John Withers

Orange County AOR
Jean L. Lambeth
Betty Jane Mays

Pacific West AOR
Esther Lurwig
Carol Taylor Sharp
Robert William Sharp

San Mateo County AOR
Francis Y. Doran

Santa Cruz AOR
Gerrie Dyer
Geary Jones
James Reding

Simi Valley-Moorpark AOR
Sue E. Anderson
Vic L. Hawker

Solano AOR
Everett French

Southland Regional AOR
Claire M. Heebner
Louis Seymore Kurzfeld
Marion Lovelace

Sutter-Yuba AOR
Kenneth Lee Curtis

Ventura County Coastal AOR
Philip Auswacks
Eileen Velvick

N.A.R. Director Selection Working Group
1. That, for implementation in 2003, the large local Associations and the large firms/franchises entitled to N.A.R. Director (s) provide to C.A.R. the name (s) of their N.A.R. Director selection by June 1st of the calendar year in order for their Director applicants to be considered for a C.A.R.- N.A.R. Directorship. The charge of the Nominating Committee is to select the best complement of applicants, regardless of Association size.  Further, the large local Associations and the Large Firms/Franchises are encouraged to establish multiple year terms for their N.A.R. Directors.

All of the N.A.R. Directors from California, whether they are representatives of large Local Associations, Large Firms/Franchises or the State allotment should represent the policies of the California Association of REALTORS®.

Strategic Planning and Finance
1. That the Association's Financial Statements as of August 31, 2002 be approved:
--The Statement of Income and Expenses by program for the eight months ending August 31, 2002.
Total C.A.R.
--Revenue of $15,659,600
--Expenses of $10,178,500 (including federal income tax).
--An excess of income over expenses of $5,481,100
Political Activities Fund
--An excess of income over expenses of $504,000.
Issue Action Fund
--An excess of income over expenses of $683,900
The C.A.R. Balance Sheet as of August 31,2002
--Total assets of $23,131,600 (of which $15,051,700 are current assets)
--Total liabilities of $3,267,600 (of which $2,511,100 are current liabilities)
--C.A.R. Fund Balance of $19,864,000.

2. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2002 be approved.
Total C.A.R.
--Revenue of $18,475,400
--Expenses of $16,739,400 (including federal income tax)
--An excess of income over expense of $1,736,000
Political Activities Fund
--An excess of income over expenses of $277,100Issue Action Fund
--An excess of income over expenses of $473,900. This amount will be allocated to IMPAC as approved by the Directors.

3. To approve a 2003-2005 strategic plan and 2003 budget with the following criteria:
Total C.A.R. Revenue $18,467,000
Total C.A.R. Cost $18,458,600 (including federal income tax)
Net Surplus $8,400
Political Activities Fund Revenue $1,078,300
Total Issue Action FundRevenue $1,078,300
Total Issue Action Fund Costs $656,100
Issue Action Fund Transfer to IMPAC $422,200
95 budgeted C.A.R. staff positions
Membership dues, including  $115 for operating programs, $10 for the Political Activities Fund and $10 for the Issues Action Fund, are set at a total of $135 per member (predicated on 2003 year end membership of 113,500).
A 2003 Capital Budget (funded with Association reserves) totaling $141,300

4. To approve for members in areas not serviced by local associations an additional $30 in membership dues. This amount would be in excess of the dues approved for members coming through the local associations.
5. To approve the Housing Affordability Fund Committee's request of $500,000 in seed money to be funded out of C.A.R. reserves as part of the 2003 budget proposal.
6. To approve costs related to the Sacramento Lease Extension in the total amount of $36,200 as follows:
--Furniture $22,000
--Telephone and computer cabling $3,000
--Cost above the TI $5,700
--Contingency $5,500
7. To approve additional costs for the Leadership Conference scheduled for December 2002 in the amount of $22,000.
8. That $260,000 be approved to provide an additional four percent pension contribution to the C.A.R. Employee pension plan for 2002, augmenting the previously approved and budgeted ten percent.

OTHER

1. That a working group be appointed by the President to study the feasibility of changing the dates for Legislative Day and the June Directors' meetings to a time in April or early May.  The date chosen should seek to maximize the effectiveness of Legislative Day while causing as little disruption as possible to other C.A.R. programs.  The group shall report to the Directors in January 2003.

2.The following special awards were presented at the Board of Directors Session:
2002 Outstanding Committee Chairs
Bill Brown, CREPAC Trustees
Chris Kutzkey, Standard Forms Advisory Committee
Steve White, California REALTOR® EXPO Advisory Committee